top of page
Writer's picturePersonal Injury Lawyer

California Pain And Suffering Settlements in Personal Injury Lawsuits

Updated: Nov 11, 2022

Everything You Need To Know About How Settlements Are Calculated During a Personal Injury Lawsuit in California

It's an inconvenient fact that, at any moment, everyone can face a personal injury. While it would definitely not alleviate the tension, discomfort, lost opportunities, and other effects of a personal injury, in situations where the injury was due to the negligence of another individual, you might be entitled to compensation.


Trial vs Settlement


In most cases, judges prefer out-of-court settlements in personal injury litigation, and personal injury lawyers will usually lobby for this as well. Reasons for this may differ, but it's generally because courts are much more costly and exhausting compared to an out-of-court settlement for those involved.


So, let's discuss some trial and pain and suffering settlement examples in California:


Trials are also far less predictable than settlements. Comparative fault rules for auto accidents are enforced by California, meaning that more than one person involved may be held financially responsible for the accident. Furthermore, even though they are found to be at fault, victims of an accident are not barred from receiving compensation for damages.


This means that even though the opposing driver was found to be primarily responsible for the crash, you will also pay 20 percent of the award for damages in the case of a settlement. During a trial, the figures agreed on by a judge could be even

be substantially less, and an attorney should never risk getting anything less than the maximum award possible.


When negotiating an out-of-court settlement, you have a far better chance of a favorable result promptly. There is no real "average" number for a settlement because such a wide range of variables calculates them, but there are plenty of steps you can take as a consumer to maximize the settlement award. California statute of limitations will give you two years to file a lawsuit after the accident.


If you've had a work-related injury, that might count towards Workers' Comp Pain and Suffering in California. This becomes an issue if your boss or the insurance company refuses to pay you for your pain and suffering damages. Thus, even when injured at work, you should still consult a Los Angeles Personal Injury Lawyer to help you fight for your rights.


Medical Treatment


It's critical to seek urgent medical attention after an accident for your own safety and recovery. This serves a double function if you think you may have a case of personal injury. Beyond reasonable doubt, obtaining medical care would show that any injuries suffered were simply a result of the accident rather than any other cause.


It will also encourage you to start planning your medical records immediately. To keep these documents up to date, follow any prescribed therapies and attend follow-up appointments. Among the most precise forms of sabotaging a personal injury case are inconsistencies in medical reports.


Collecting Evidence After An Accident In California

You'll want to bring as many relevant details as possible to your initial appointment with an attorney following your medical care. Fortunately, most personal injury situations operate on a contingency basis, so you'll have no problems finding legal assistance as long as you conduct due diligence when searching for a California Attorney For Personal Injury. (we'll get to that later)


Any video or photographic proof of the accident scene that you can provide would be extremely helpful. Photographing the surrounding area and any signs, collateral damage, or other marks, even though you do not have proof of the accident itself, will provide useful supportive information about the case. In addition to your medical history, any accident/police reports would be helpful, as well as any statements or contact details for willing witnesses.


Two Standard Methods For Measuring Pain And Suffering Damages In California

There is no single clear rule on how insurance providers can seek to measure settlement awards for pain and suffering. Indeed, it can be something of a 'black box' to value intangible harm like pain and suffering. How insurers come to their estimates in settlement proposals may be difficult to grasp. However, there are two general approaches used to measure pain and harm as a baseline:

  • The Multiplier Method: The overall economic losses (medical costs, missed income, etc.) are measured as a reference number using the multiplier method. To measure pain and suffering, a multiplier is then chosen. For example, if a car accident victim has $10,000 in economic damages and a multiplier of '2' has been chosen for their pain and suffering, then $20,000 will be calculated for their pain and suffering.

  • The Per Diem Rule: In the per diem rule, once the survivor has completely recovered from their injury, a dollar figure for pain and suffering is assigned for each day. For example, if a per diem sum of $100 was chosen, and the victim took 100 days to achieve full medical recovery, then $10,000 would be valued for pain and suffering damage.

Note: Under California law (California Civil Code 3333.4), reimbursement of compensation for pain and suffering is forbidden for certain motorists. Specifically, it might be difficult for uninsured drivers to make a claim for pain and suffering.

pain and suffering lawyer los angeles

Intangible Damages Are Frequently Undervalued

You need to know how to deal with insurance adjusters if you have been involved in a car accident. In situations where the victim of an accident has sustained serious injuries or suffered significant pain and suffering, this is extremely important. Justice demands that the victim completely and adequately accounts for such injuries. Sadly, insurance firms typically concentrate on maintaining their own bottom line.


Are Pain And Suffering Settlements in California Taxable?

Generally, a settlement or cash payout is excluded from taxes on a personal injury claim for a bodily injury or illness. Some exceptions apply, however. Some cases of personal injury can linger for months or even years until a plaintiff sees some sort of financial recovery. In the meantime, their medical costs and other economic problems must be handled independently. Those medical costs would no longer be tax-exempt in the following years if a plaintiff were to take an itemized deduction for medical expenses in previous years. In turn, this will be "double-dipping" on a tax gain.


The settlement or case award is tax-exempt if an applicant seeks a cash award or settlement for a physical injury or illness but has not already taken any itemized deductions for those expenses. If part of the applicant's medical expenses occurred during the preceding tax year and the applicant sought an itemized deduction, the applicant would use a pro-rata calculation to assess his or her tax responsibility for the balance of the medical expenses incurred during the preceding tax year.


In the same scenario, the tax-exempt status for qualifying for physical illness or disability includes all similar types of compensation. For instance, if a plaintiff secures compensation for pain and suffering due to his or her physical injury or sickness, such awards will also be tax-exempt.


When Taxes Become An Issue In A Personal Injury Lawsuit in California?

Some lawsuits for personal injuries include specific claims for other types of damages. A plaintiff, for example, may file a lawsuit against a defendant for breach of contract and personal injuries associated with it. To decide the reasonable amount of damages associated with each lawsuit, the plaintiff and the plaintiff's attorney must work together to avoid any surprises.


Often, if the plaintiff secures a settlement or cash compensation, the plaintiff's personal injury lawyer can request a breakdown of the plaintiff's damages and to which claims they relate. The tax exemption includes only damages and payments received for bodily injury and negligence-induced illnesses.


Missing wages also qualify under all existing laws for taxation. For example, if a claimant secures compensation for a year's worth of missed employment, the claimant will also be expected to report the proceeds in their tax declaration because they are legally considered taxable income.


Who Should I Hire To Represent Me In A Personal Injury Case?

The single and most important decision after an accident is hiring a competent, reliable, and ethical California Attorney For Personal Injury. Most people are lured by fancy websites and TV and radio commercials when choosing a California personal injury lawyer. In some cases, they find out the lawyer has a history of unethical behavior and poor performance months after hiring the lawyer.


When selecting a California Personal Injury Attorney, you must do your homework and check the lawyer's credentials, reviews, education, and verify experience. Most importantly, make sure the personal injury attorney isn't currently under investigation for committing fraud.


The California State Bar recommends that you get an unbiased lawyer referral by a State Bar-accredited personal injury lawyer referral service. To find pre-screened Top Rated Personal Injury Attorneys In Los Angeles (and other areas in Southern California!), submit your case details online here 24 hours a day and get an answer in 15 minutes or less or by calling 661-310-7999


Related articles about California personal injury law:
Best Lawyers Near Los Angeles

California State Bar Certified Lawyer Referral And Information Service

Welcome to 1000Attorneys.com, a Lawyer Referral and Information Service certified and approved by the California State Bar.

"Our commitment is to provide you with unbiased and impartial lawyer referrals."

 

Unlike other services, we maintain complete independence from the lawyers receiving these referrals, ensuring transparency and fairness.

While we specialize in California employment law and personal injury claims, we offer our referral services for various other legal areas.

 

At 1000Attorneys.com, we aim to ensure you are connected with best California attorney near you who can provide comprehensive and exceptional representation for your specific legal needs.

 

We understand that every legal situation is unique and are dedicated to finding the best match for you.

 

With our extensive network of attorneys, we strive to deliver outstanding legal support and guidance tailored to your individual requirements.

At 1000Attorneys.com, we hold California attorneys to the highest standards of professional conduct.

 

Your satisfaction and confidence in the legal representation you receive are paramount to us.

 

Rest assured that when you engage in our services, you can expect nothing less than exceptional legal support and guidance.

Why Lawyer Referrals Matter

 

The California State Bar investigates on average 16,000 complaints of professional misconduct by attorneys annually.

We conduct due diligence by researching and recommending the best local attorney for your case. 

 

Our team of experts verifies that attorneys are in good standing and have the required experience in the type of law related to your legal issue. 

Learn more about attorney discipline here.

 

Our History 

 

Since 2005, we have been dedicated to helping individuals find reliable legal representation in California.

 

We understand the challenges people face when trying to locate reputable lawyers, especially when inundated with self-promoting advertisements and biased marketing from law firms.

 

At our service, we strive to cut through the noise and provide a trustworthy and unbiased platform for connecting individuals with reputable California lawyers.

 

Our clients receive quality legal representation without the frustration and uncertainty often associated with legal advertising.

How the LRS Works 


Anyone seeking competent and honest legal representation in California, can request a FREE lawyer referral. 

Once you submit your case details online, our legal 24-hour legal department will review your claim and reply via email. Most cases are reviewed and answered within 15 minutes. 

 

A free 30 minute consultation with the attorney will be offered to each referred client. 

A representative will follow up a few days later via email with the client after receiving a referral for quality management purposes, or to obtain the status of the case. 

About lawyers from our network


California lawyers in our network are insured, in good standing with the California State Bar, and have substantial experience in their practice area.

 

Attorneys are available in most areas of law throughout Southern California. Every lawyer in or network has been vetted for:

  • Credentials

  • Education

  • Communication skills

  • Performance

  • Client reviews

  • Fair legal fees

  • Continuing education

  • Professional affiliations

Additionally, we conduct criminal  background checks and attorneys are always monitored by our service.  

How to find the best lawyer for your legal case: 

1. The fastest way to have your legal issue reviewed by one of our attorneys is to send your details online.

 

Your information will go directly to our 24 hour legal department bypassing our call center. You will get a reply via email within 15 minutes. 

2. You may also inquire about your legal issue via email. We respond to email inquiries within 24 hours M-F. 

3. By calling our lawyer referral hotline 661-310-7999. However, our agents are not attorneys and cannot provide legal advice. Due to high call volumes, it's highly recommended that you use option # 1 above. 

 

Simple Retro Handyman Service Badge Logo-2.png
bottom of page